Telecom R&D outsourcing company Sasken Communication Technologies Ltd will hit the capital market with an initial public offer on August 11 for raising upto Rs 130 crore (Rs 1.3 billion) to fund the new software development centre in Bangalore.
"The issue will open for bids on August 11 and close on 17. The proceeds of the IPO will be used for constructing a new centre for software development and to meet general corporate purposes including strategic investments, acquisitions and joint ventures," Sasken chairman and chief executive officer Rajiv C Mody told reporters on Thursday.
Mody said Sasken is entering capital market with fresh issue of 5,000,000 equity shares of Rs 10 each for cash at premium to be decided through the book-built process. Price band for the issue has been fixed at Rs 230 and Rs 260 per share, he said.
"The offer size is of between Rs 115 crore (Rs 1.15 billion) to Rs 130 crore. Of the total issue, 500,000 shares have been reserved for employees and the balance to public," he said.
Mody said the company is currently working with terminal device manufacturers, network equipment manufacturers and semi conductor vendors aiming at markets including China and North America.
Companies including Intel, Nortel Networks and Nokia Growth Partners have invested in Sasken, he said.
Enam Financial Consultants Pvt Ltd is the sole book running lead manager to the proposed IPO, Mody said.